Schedule 3, paragraph 3A

The exchange must— have written agreements with all investment firms pursuing a market making strategy on trading venues operated by it (“market making agreements”); have schemes, appropriate to the nature and scale of a trading venue, to ensure that a sufficient number of investment firms enter into such agreements which require them to post firm quotes at competitive prices with the result of providing liquidity to the market on a regular and predictable basis; monitor and enforce compliance with the market making agreements; inform the FCA of the content of its market making agreements; and provide the FCA with any information it requests which is necessary for the FCA to satisfy itself that the market making agreements comply with paragraphs (c) and (d) of this sub-paragraph and sub-paragraph (2). A market making agreement must specify— the obligations of the investment firm in relation to the provision of liquidity; where applicable, any obligations arising from the participation in a scheme mentioned in sub-paragraph (1)(b); any incentives in terms of rebates or otherwise offered by the exchange to the investment firm in order for it to provide liquidity to the market on a regular and predictable basis; and where applicable, any other rights accruing to the investment firm as a result of participation in the scheme referred to in sub-paragraph (1)(b). For the purposes of this paragraph, an investment firm pursues a market making strategy if— the firm is a member or participant of one or more trading venues; the firm's strategy, when dealing on own account, involves posting firm, simultaneous two-way quotes of comparable size and at competitive prices relating to one or more financial instruments on a single trading venue, or across different trading venues; and the result is providing liquidity on a regular and frequent basis to the overall market.

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Source: legislation.gov.uk · retrieved 2026-09-04